Why did Cineworld stock fall?

Yahoo Finance Live's Jared Blikre breaks down the decline in stock for Cineworld. Cineworld shares plunged on Monday on a deal that's intended to wipe out existing shareholders as it took its theaters in the U.S., the U.K. and Ireland off the market. Cineworld's share price has slumped by more than a quarter on Monday.

What is Cineworld Group plc?

Cineworld Group Plc operates as a cinema chain in different territories. It operates through the United States; United Kingdom and Ireland; and Rest of the world divisions. The firm offers its products and services under the brands Cineworld, Picturehouse, Cinema City, Yes Planet and Rav-Chen.

Is Cineworld on loan?

According to my data provider, 146m Cineworld shares are on loan at present. That represents about 16% of the free float. This indicates that sophisticated investors see further share price weakness ahead. Given the high level of uncertainty here, I’m not tempted to buy the stock.

What is Cineworld's market cap?

Cineworld’s market cap now stands at just under £32m. This is a far cry from the four-and-a-half billion pounds the company was worth before the Covid-19 outbreak. What Next For Cineworld? A trip to the movies retains a special and unique experience for the watcher.